Is the worst finally over for office fitout price pressures in APAC?

Costs range from US$195 psf in Tokyo to US$58 psf in Jakarta.

The cost to fit out an office in key locations across Asia Pacific has continued to rise, although at a slowing rate, according to findings from Cushman & Wakefield’s 2025 Fit Out Cost Guide.

The global real estate service provider’s annual report showed fit out costs range from US$195 per square foot (psf) in Tokyo to US$58 psf in Jakarta. 

Here’s more from Cushman & Wakefield:

Similarly to previous years and in line with expectations, Japanese cities were the most expensive markets while Southeast Asian cities were the most affordable locations for office fit outs. 

While there was some fluctuation at a market level and within local currencies, the ranking of most to least expensive fit out costs in US dollars per square foot remained largely unchanged, though gaps have narrowed between some markets. Market movers included:

• Hong Kong jumped from 9th to 5th most expensive, overtaking Auckland, Seoul, Sydney and Melbourne, propelled by the strong US dollar to which its currency is pegged. 
• Manila climbed from 20th to equal 17th with Shanghai, overtaking other Chinese mainland cities Shenzhen and Guangzhou which experienced declining rates
• Jakarta fell from 24th to 33rd position as occupiers opted for lower-spec fit outs, making it the most affordable fit out destination in the region, ahead of Ho Chi Minh City, which was the most affordable destination last year. 

Report author and Head of International Research, EMEA & APAC, Dr Dominic Brown said changes to local fit out costs were largely aligned with the economic outlook of each market and the related office leasing activity. 

“As a region, Asia Pacific is one of the more expansionary, and we have seen more growth and slightly more positive sentiment about the market by contractors here than in other regions.

“Measured by both contractor sentiment and actual cost, it appears that the worst of the pricing pressure from recent years has resolved and prices for raw materials are on the way down, while tight labour markets continue to drive some wage inflation.”

Asia Pacific Head of Project & Development Services Tom Gibson said: “We have seen an uptick in retrofit and upgrade activity across the region as more clients opt for lease renewals over relocations. In almost all cases, the employee experience remains a key focus for occupiers, with these higher quality fit outs continuing to place upward pressure on costs in most markets.”

In local currency, North Asian cities including Tokyo, Seoul and Osaka saw the greatest fit out cost inflation of around 16%, followed by Australian cities, which averaged 11%. Jakarta saw the greatest decrease in costs (-16%); Chinese mainland cities also saw declines. India recorded steady inflation of around 3% in most cities.